Roku, Inc.

Roku, Inc.

Basic information
Founded	2002
Type	Public
Industry	Media Streaming
Official website	https://roku.com/

Roku, Inc. is an American technology company, founded in October of 2002, known for their "Roku" line of products which consist of Smart TVs & streaming players. It is also the creator and maintainer of "Roku OS." Roku OS is a smart TV operating system allowing users to access apps such as streaming services, which was released in 2004.

Consumer-protection summary

Privacy

• Roku collects personal information such as the user's device information, usage data, viewing activity, and location data.
• This data is used for purposes such as providing and improving services, personalizing content, and targeted advertisements.
• Roku retains personal data for as long as deemed necessary.
• On many of their devices and services such as Roku OS, "Do not sell my personal information" is opt-out rather than opt-in.

Transparency

• The "Do not sell my personal information" setting on Roku OS is hidden behind many menus.
• Roku states the added forced arbitration clause was a decision made separate of the data breach, however this has been met with scepticism by the community.

Products and Services

Streaming Devices

Roku's core products are streaming media players that connect to televisions via HDMI, allowing users to stream content from various online services. The lineup includes:

• Roku Express - Entry-level HD streaming devices
• Roku Streaming Stick - Mid-range portable streaming devices
• Roku Ultra - Premium streaming devices with enhanced features

Roku TV

In 2014, Roku began licensing its operating system to TV manufacturers, creating the Roku TV platform. These smart TVs come with Roku OS built-in. Partners include TCL, Hisense, Sharp, and Philips, among others.

Roku OS

Roku OS is the operating system that powers all Roku devices. Key features include:

• The Roku Channel Store, which serves streaming channels/apps
• Universal search across multiple streaming services
• Voice control capabilities
• The free, ad-supported Roku Channel
• Customizable home screen interface

Audio Products

• Roku Streambar - Combines a soundbar with a streaming player
• Roku Wireless Speakers - Designed specifically for Roku TV systems
• Roku Wireless Subwoofer - For enhanced bass response

Content and Advertising

The Roku Channel is the company's own ad-supported streaming service, offering free movies, TV shows, and some original content. Roku also operates an advertising business that serves as a significant revenue source, placing ads across its platform.

Consumer-protection incidents

Auto-playing Ads Before Home Screen (Mar. 2025)

In March 2025, reports surfaced that Roku was testing a new advertising feature that plays video ads before users could access the Roku OS home screen. Users reported that when turning on their Roku TV or streaming device, they were met with a video advertisement — often for the movie Moana 2 — before reaching the home screen. While some users found an option to skip the ad, others claimed that there was no clear way to bypass it.

A Roku spokesperson confirmed that the autoplaying ads were part of a temporary test but did not specify whether they would become a permanent feature. The company stated that its business model relies on continuous testing and innovation in advertising but did not address customer concerns or backlash. Many users expressed dissatisfaction, with some stating they would stop using Roku devices if this feature were permanently implemented. Community discussions and forum posts described the ads as "unacceptable" and "intrusive".

Roku has previously been known for pushing the boundaries on advertising, including filing a patent for technology that could overlay ads on third-party devices connected to a Roku TV. While this patent has not yet been implemented, the new auto-playing ads suggest Roku is continuing to explore aggressive advertising strategies.

Post-Purchase EULA Modification (Mar. 2024)

The screen in which consumers agreed to force arbitration. There is no "disagree."

In early March 2024, Roku Inc. modified its End-user license agreement (EULA), after the company disclosed a data breach that affected 15,000 accounts. In April 2024, Roku disclosed another incident that affected 576,000 additional accounts.

This new EULA was enforced onto pre-existing users in the form of a message on their Smart TV/streaming player, which only allowed the user to accept the new terms, and did not offer an option to decline. The only option Roku Inc. offered to opt-out of the new EULA was for the user to mail the company their contact information and email used to register the Roku account (if applicable), along with the product model, software, or service "at issue." In this new EULA, Roku included a forced arbitration agreement to not allow users to sue, or to take part in lawsuits against Roku Inc. Roku claimed a week later that the new EULA was not in relation to the aforementioned data breach.

"HDMI-customized ad insertion" patent (Oct. 2023)

In early October 2023, Roku filed a patent (US20230388589A1) for a program to insert ads on top of the display output of any non-Roku device displayed on a Roku TV. This program would be able to detect when the consumer has paused a video feed and display an advertisement, personalized by data collected through Roku services.

As of January 2025, this patent has not been implemented into any Roku devices. However, a similar feature which also detects content from connected devices, called "More Ways to Watch," has previously been implemented.